Last updated: December 4th, 2024 3:21 PM

PAN Card 2.0: Key Features, Benefits & Process

The PAN Card (Permanent Account Number) is a vital tool for individuals and businesses in India to comply with tax laws and track financial transactions. The Income Tax Department has introduced the PAN 2.0 initiative to make the process of obtaining and using PAN cards easier and more secure. PAN 2.0 includes a new QR code for quick online verification and aims to provide a more paperless and digital experience. In this article, we will explain what PAN 2.0 is, its features and benefits, and how to apply for the upgraded PAN card. Whether you already have a PAN card or are applying for one, understanding PAN 2.0 will help you make the most of this new system.

What is PAN Card 2.0?

The Income Tax Department has introduced PAN 2.0 to optimize the process of issuing and managing Permanent Account Numbers (PAN). Under this PAN 2.0 initiative, applicants receive e-PAN cards featuring a secure QR code, delivered directly to their registered email IDs at no cost. A minimal fee applies for those who prefer a physical PAN card. It is important to note that existing PAN cards will remain valid even without the QR code.

PAN 2.0 Project Overview

The PAN 2.0 Project is a transformative initiative launched by the Income Tax Department of India to upgrade the Permanent Account Number (PAN) system with advanced technological features, including the incorporation of a QR code. The project was approved by the Cabinet Committee on Economic Affairs (CCEA) on 25th November 2024 with a financial outlay of Rs. 1,435 crore. The primary goal of PAN 2.0 is to digitally enhance the PAN card system by moving towards a fully paperless, streamlined, and technology-driven process. The project is aligned with the government's broader Digital India vision, aiming to improve service delivery, ensure better security, and provide a seamless digital experience to taxpayers.

Features of Pan Card 2.0

The new PAN Card 2.0 system introduces key advancements, including mandatory Aadhaar linkage, real-time data validation, and advanced analytics to strengthen security and combat fraud effectively. Here are the core features of PAN Card 2.0:

• QR Code Integration: The PAN 2.0 card includes a QR code for quick verification and easy access to taxpayer information.
• Unified Digital Platform: A single platform consolidates all PAN-related services, making it easier for users to manage their accounts online.
• Enhanced Cybersecurity: Improved measures ensure taxpayer data is protected from unauthorized access and breaches.
• Eco-Friendly Operations: By going paperless, PAN 2.0 reduces environmental impact and operational costs.
• Secure PAN Data Vault: A dedicated vault ensures safe storage for entities using PAN data, bolstering privacy and security.
• Mandatory Aadhaar Linkage: The new system ensures that Aadhaar is linked to PAN for enhanced verification and fraud prevention.
• Real-Time Validation: Immediate validation of PAN details improves accuracy and reduces errors in the system.
• Advanced Data Analytics: Cutting-edge technology will help detect and prevent fraudulent activities more effectively.

Benefits of PAN Card 2.0

The updated PAN Card design under the PAN 2.0 initiative integrates advanced features such as a QR code, offering enhanced security and efficiency. This upgrade minimizes fraud risks by enabling quick and secure verification of user details. Adopting this improved PAN card is a proactive step for safeguarding identity and financial information, effectively reducing exposure to fraudulent activities. Here are the advantages of 2.0 PAN Card.

• Enhanced Security: The integration of a QR code in the PAN card introduces a robust layer of security. Encrypted personal information, such as name, date of birth, and PAN number, is stored within the QR code, accessible only through authorized scanning software. This makes it nearly impossible for fraudsters to alter or duplicate the card.
• Streamlined Verification: The QR code enables quick and accurate identity validation by allowing instant scanning. This feature significantly reduces the time required for verification processes, benefiting both cardholders and organizations conducting checks. 
• Updated Information Maintenance: With 2.0 PAN Card, user details are synchronized with the latest formatting and requirements of the Income Tax Department. Any outdated or inconsistent information is automatically corrected or updated during the digitized application or replacement process. .
• Fraud Prevention: The use of advanced encryption for the QR code prevents unauthorized duplication of the PAN card. The embedded information cannot be easily replicated or counterfeited without access to authorized decryption tools.
• Regulatory Compliance: 2.0 PAN Card ensures alignment with updated government protocols and security measures. This modernization supports regulatory efforts to enhance the financial system’s integrity, reducing the risk of misuse or errors.
• Digitized Application Process: Under the PAN 2.0 initiative, the entire process of applying for, updating, or reissuing a PAN card has been fully digitized. This reduces paperwork and makes it easier for applicants to submit and track their applications online. 
• Eco-Friendly Operations: PAN 2.0 promotes a paperless system, reducing the environmental impact associated with traditional card production and distribution.
• Accessibility for Updates and Corrections: A free application option is available for those needing to update details like name or date of birth. This ensures that users can easily transition to the new system without incurring unnecessary expenses.

Documents Required for Pan Card 2.0 Application

To apply for PAN 2.0, the following documents are required for verification. Make sure all the documents you provide are up-to-date, accurate, and meet the specified requirements to avoid delays in processing:

• Proof of Identity (PoI): This is required to verify your identity. Acceptable documents include:
  • Aadhaar Card
  • Passport
  • Driving License
  • Voter ID Card
• Proof of Address (PoA): This document will be used to verify your residential address. You can provide one of the following:
  • Bank Statements(Recent ones, usually from the last 3 months)
  • Rent Agreement(If applicable)
  • Utility Bills(Recent ones, usually from the last 3 months, such as electricity, gas, or water bills)
  • Aadhaar Card(If it has the current address)
• Proof of Date of Birth (DoB): To verify your date of birth, you can provide any of the following:
  • Birth Certificate
  • School-Leaving Certificate
  • Passport

For more details on the documents required for PAN card application, please refer to the document attached here:

Additional Notes:

• Ensure that the documents you provide are valid and not expired.
• All documents should be legible and clear for a smooth verification process.
• Aadhaaris is a preferred document as it can serve as both Proof of Identity and Proof of Address, but you can use other valid documents as needed.

Eligibility for Pan Card 2.0

To apply for PAN Card 2.0, individuals must meet specific eligibility criteria, whether they are existing PAN cardholders or new applicants, and provide the required documents for verification.

• Existing PAN Cardholders: If you already possess a PAN card, you are automatically eligible for the PAN 2.0 upgrade. You can request the new QR-enabled PAN without reapplying.
• New Applicants: New applicants must fulfil the standard eligibility requirements by providing the following documents:

1. • Proof of Identity (PoI): Aadhaar card, Voter ID, Passport, or Driving License.
   • Proof of Address (PoA): Utility bills, Bank Statements, or Rent Agreements.
   • Proof of Date of Birth (DoB): Birth Certificate, School Leaving Certificate, or Passport.

Note: Ensure that all documents are accurate and up-to-date to avoid delays.

Pan Card 2.0 Application Process - Step-by-Step Process

All current PAN cardholders are automatically eligible for this PAN 2.0. If you already have a PAN, you do not need to reapply but can simply request the new QR-enabled version. Below is a detailed guide for obtaining your PAN 2.0 online through the official channels of NSDL and UTIITSL. Also read: Download ePAN Card – Get ePan from NSDL & UTIITSL

Check Whether Your PAN is Issued by NSDL or UTIITSL

Before proceeding, ensure you know whether your current PAN card was issued by:

• NSDL (National Securities Depository Limited)
• UTIITSL (UTI Infrastructure Technology and Services Limited)

This information can be found on the back of your existing PAN card. Based on your issuer, follow the specific instructions below.

How to Apply for Pan Card 2.0 via the NSDL Website

If you're a current PAN cardholder and would like to obtain the upgraded PAN 2.0 card, which includes a QR code for added security, here's a detailed step-by-step guide for applying via the NSDL website.

Step 1: Visit the NSDL Website:

Go to the official NSDL PAN Request Page:

Step 2: Enter Your PAN and Personal Information

On the NSDL page, you will be required to enter the following details:

• PAN(Permanent Account Number)
• Aadhaar Number(This is mandatory for individuals only)
• Date of Birth

PAN 2.0 Card Online from the NSDL Website - 1 After entering the details, you will also be asked to:

• • Tick the applicable checkboxes to confirm that the information entered is correct.
  • Submit the details and wait for the system to display the information as registered with the Income Tax Department.

PAN 2.0 Card Online from the NSDL Website -2

Step 3: Choose the OTP Delivery Method and Validate the Details

• Once the system has displayed your information, you will be prompted to choose the method for receiving the One-Time Password (OTP). You can typically choose between receiving the OTP via email or SMS.
• After selecting the OTP delivery method, you will receive a 6-digit OTP. Enter the OTP on the NSDL website to validate your details.
  • Important: The OTP is valid for 10 minutes, so be sure to enter it promptly.

Step 4: Agree to Terms and Conditions

• After successfully entering the OTP and validating your details, you will need to read and agree to the terms and conditions presented by the NSDL website.
• Once you agree to the terms, you will be asked to proceed with the payment.

Step 5: Payment and Final Submission

• The process to receive your e-PAN may be free if your PAN was issued recently (within the last 30 days). If you've exceeded the free request limit, you will be required to pay a nominal fee (Rs. 8.26, including GST).
• Select the payment mode(Credit/Debit Card, Net Banking, etc.) and confirm the payment amount.
• After successfully making the payment, your PAN 2.0 card will be delivered to your registered email ID in PDF format.
• The email should arrive within 30 minutes of the payment being processed.

How to Apply for Pan Card 2.0 via UTIITSL Website

If you're a PAN cardholder and want to obtain the upgraded PAN 2.0 card with a QR code, here’s a detailed step-by-step guide on how to get it from the UTIITSL (UTI Infrastructure Technology and Services Limited) website.

Step 1: Visit the UTIITSL Website

• Go to the official UTIITSL PAN Request Page.

Get PAN 2.0 Card Online from the UTIITSL Website - 1

Step 2: Enter Your PAN and Personal Details

On the UTIITSL page, you will need to enter the following details:

• • PAN(Permanent Account Number)
  • Date of Birth
  • Captcha Code(to verify that you are not a robot)

After entering these details, click Submit to proceed to the next step. Get PAN 2.0 Card Online from the UTIITSL Website - 2

Step 3: Check for Registered Email ID

• Once you submit the details, the system will display whether an email ID is already registered with your PAN details in the Income Tax records.
  • If your email is registered, proceed to request your e-PAN.
  • If your email is not registered, you will need to update it under the PAN 2.0 project. This will be free of charge once the PAN 2.0 project is fully implemented.

Step 4: Request e-PAN

• Free e-PAN: If your e-PAN was issued within the last 30 days, you can request the e-PAN free of charge.
• Paid e-PAN: If your e-PAN was issued more than 30 days ago, a fee of 8.26(including GST) will be applicable for each request for your e-PAN.

Step 5: e-PAN Delivery to Your Email

• After confirming the request and making any applicable payment, your e-PAN will be sent to your registered email ID in PDF format.
• The e-PAN should arrive in your inbox within a few minutes, depending on the processing time.

Important Notes:

• Processing Time: After payment is confirmed, the e-PAN should be delivered to your email within 30 minutes.
• Updating Email Address: If your email address is not updated in the Income Tax records, you can do so once the PAN 2.0 project officially starts, which will allow you to receive the PAN card digitally.
• Physical PAN Request: If you want a physical copy of the PAN card, a fee of Rs. 50(domestic) or Rs. 15 + postage (international) will be charged.

Difference Between Pan Card and Pan Card 2.0

The traditional PAN card is a physical card issued by the Income Tax Department to individuals and entities for the purpose of tracking their financial transactions and ensuring compliance with tax laws in India. The PAN 2.0 card is the upgraded version of the traditional PAN card. Here is a detailed comparison of the key differences between the PAN Card and the PAN 2.0 Card:

QR Code

• Traditional PAN Card: Does not have a QR code.
• PAN 2.0: Includes a QR code that allows for quick and secure verification of the PAN details directly from the Income Tax Department’s database.

Format

• Traditional PAN Card: Issued as a physical card.
• PAN 2.0: Can be received as both a physical card and an e-PAN (digital version).

Verification

• Traditional PAN Card: Verification is typically manual, where authorities or individuals must check the card for validity.
• PAN 2.0: The QR code allows for instant online verification, making the process more secure and efficient.

Cost

• Traditional PAN Card: Requires a payment (Rs. 50 for domestic requests) for the physical card.
• PAN 2.0: Issued free of charge for all taxpayers, both in physical and e-PAN formats.

Security

• Traditional PAN Card: Basic security features such as a photograph and signature.
• PAN 2.0: Enhanced security with the QR code, making it more difficult to forge.

Delivery Time

• Traditional PAN Card: It may take longer to receive after applying (typically a few weeks).
• PAN 2.0: The e-PAN is delivered within minutes to the registered email ID, while the physical card may take a few weeks.

Here's a table to clearly illustrate the difference between PAN Card and PAN Card 2.0:

Feature	PAN Card	PAN Card 2.0
QR Code	No QR Code	Includes a QR Code for quick verification.
Format	Traditional plastic card with the PAN number.	Same 10-digit alphanumeric PAN number, but with a QR code.
Verification Method	Manual verification of details.	Quick verification through the QR code by scanning it.
Security Features	Basic security features (photograph, signature).	Enhanced security with QR code, which can be scanned for authenticity.
Digital Version	Only available in physical form.	Available as both physical PAN Card and e-PAN (digital format).
Cost	Charges are applicable for issuing physical PAN cards.	Issued free of cost (both physical and digital versions).
Purpose	Used for tax-related purposes, such as filing returns, financial transactions, etc.	It is the same as a traditional PAN card but with enhanced security and convenience due to the QR code.
Processing Time	It may take longer to receive, especially if applying for a physical card.	e-PAN is delivered within minutes to the registered email; the physical card may take up to a few weeks.
Use in Transactions	Used for financial transactions, tax filings, etc.	It has the same use, with easier verification due to the QR code.

Summary:

• Traditional PAN Cards are physical cards with no QR codes, primarily used for tax purposes.
• PAN 2.0 is the upgraded version with a QR code for faster and more secure verification, available in both physical and digital formats, and is issued free of charge.

Conclusion

PAN Card 2.0 represents a significant leap forward in simplifying and securing the tax system in India. With its enhanced features like the QR code, paperless process, and improved security, it offers a seamless and efficient experience for taxpayers. This upgrade aligns with the government's Digital India vision, ensuring better data protection, faster verification, and ease of access. Whether you're a new applicant or an existing PAN cardholder, adopting PAN 2.0 is a step toward a more secure and convenient future in managing financial and tax-related activities.